Mortgage lenders are notorious for using sales gimmicks in order to entice prospective lenders into signing with them. By highlighting their competitive rates or offering incentives such as cash back, the hope is to sway borrowers. However, these tactics should not be the sole deciding factor in choosing a mortgage lender.
Borrowers must ensure they understand the terms and conditions of their loan and should consider evaluating several options. This means going beyond the advertised rate and taking into account factors such as closing costs, prepayment fees, and other associated costs. It can pay off to research the company in order to assess their track record and customer service quality.
The article also stresses the importance of finding a loan that fits the borrower's needs and not necessarily the one with the lowest rate. Homebuyers should also look into whether they qualify for certain loan programs that may provide benefits. For example, those who have served in the armed forces may qualify for a VA loan, which has no down payment requirement, no private mortgage insurance (PMI), and lower closing costs.
The article wraps up by encouraging borrowers to talk to friends and family who already have mortgages and get their advice. Every borrower's situation is unique so it's important to take other people's experiences into account when making a decision.
The main takeaway from this article is that it pays to do your research when shopping for a mortgage lender. It's a good idea to compare rates and terms offered by different lenders, but don't let flashy sales gimmicks be the deciding factor. Additionally, make sure to look into special loan programs that may apply to you and consult with friends or family who already have mortgages so that you can get some practical advice that applies to your specific situation.
This article was contributed on Nov 03, 2023
